Business
Jerash Holdings Reports Financial Results for Fiscal 2024 Fourth Quarter and Full Year
--Fourth Quarter Results Impacted by Production Delays Due to Red Sea Logistics Disruptions----Outlook for First Quarter and Fiscal 2025 Improves--FAIRFIELD,
About this update from Jerash Holdings (us), Inc.
[{"type":"text","content":"--Fourth Quarter Results Impacted by Production Delays Due to Red Sea Logistics Disruptions----Outlook for First Quarter and Fiscal 2025 Improves--FAIRFIELD, NJ / ACCESSWIRE / June 27, 2024 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the \"Company\" or \"Jerash\"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2024 fourth quarter and full year, ended March 31, 2024.\"Continuing attacks on ships in the Red Sea, where approximately 12 percent of the world's trade passes, again caused supply chain disruptions throughout the region,\" said Sam Choi, Jerash's chairman and chief executive officer. \"Shipments of raw materials to Jerash were delayed, which impacted the Company's production for its global customers and, in turn, Jerash's financial performance for the fiscal fourth quarter and full year. Certain orders that could not be completed during the fourth quarter were shipped in the fiscal 2025 first quarter.\"Gross margin was substantially down for the fiscal fourth quarter due to significantly higher ocean freight and transportation costs from Asia to Jordan. However, we have identified and are now aggressively increasing our sourcing of raw materials from Turkey and Egypt to circumvent shipping routes and related logistics costs. During the fourth quarter, we were able to keep our factories busy by obtaining local orders, albeit with much lower margin, keeping our workforce employed and allowing us to be ready for growth in the new fiscal year.\"On a positive note, we are experiencing a tangible increase in purchase orders from long-term customers. As well, we are receiving an influx of business from new, high-profile global brands, both directly, and through our joint venture with Busana. Our manufacturing facilities currently are fully booked into the second fiscal quarter, which gives us renewed confidence as we enter the new fiscal year,\" Choi added.OutlookRevenue for the fiscal 2025 first quarter is expected to increase by 14-15 percent from the same quarter last year; full year revenue is expected to increase by 15-18 percent.Gross margin goal for fiscal 2025 year is currently expected to be around 13-15 percent, subject to logistics and shipping charges and final product mix of shipments.Fiscal 2024 Fourth Quarter...